A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. t expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information pelow, help determine the Total Net Cash Flows, the Net Present Value and the estimated Payback Period. Note: Estimate the payback period to the nearest year. Discount Rate 12% Investment Project Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow $ $ $ $ $ $ Total Net Cash Flow (5,000) ? 800 900 ? 1,500 1,800 3,200 ? ? ? NPV of investment Estimated Payback Period

A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. t expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information pelow, help determine the Total Net Cash Flows, the Net Present Value and the estimated Payback Period. Note: Estimate the payback period to the nearest year. Discount Rate 12% Investment Project Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow $ $ $ $ $ $ Total Net Cash Flow (5,000) ? 800 900 ? 1,500 1,800 3,200 ? ? ? NPV of investment Estimated Payback Period

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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